Navigate this market better. Subscribe for FREE stock alerts and information.

Wednesday, January 23, 2013

Undervalued Stock Detected (NASDAQ: SMCI)

Shares of SMCI traded higher by 13.78% or $1.45/share to $11.97. NASDAQ is trading at a price to book ratio of 1.28. This indicates that the shares are relatively cheap compared to book value which means the market is pricing in going concern value. The PEG is 1.19 suggesting that the shares are attractively priced relative to the firm's growth rate. The price to sales ratio came in at 0.42. Hence, the firm is extremely cheap relative to its top line sales figures. On average, 207248 shares of SMCI exchange hands on a given day and today's volume is recorded at 852508. These factors combined may make this company a potential takeover candidate. Value investors may have an eye on this one, especially if the stock gets cheaper.